During 2024, 6.78 million workers signed 15.42 million contracts in Spain. This represents an average turnover of 2.27 contracts per person, according to estimates recently published by the State Public Employment Service (SEPE). This figure hardly differs from the figure recorded in 2023, which was 2.26, suggesting an important conclusion: the trend of improving job stability seems to have stalled.
What does this data tell us?
Following the entry into force of the labor reform at the end of 2021, many sectors began to show a progressive reduction in temporary contracts and an increase in permanent contracts. However, the latest data point to the fact that the transformative capacity of the rule in terms of reducing contractual turnover has reached its limit. The improvement has slowed down and has even begun to stabilize, reflecting the fact that the regulation, although effective at its inception, no longer generates the same impact.
Where is the rotation concentrated?
The group of workers with permanent contracts has a much lower turnover rate: 1.26 contracts per person. Within this group, contracts resulting from conversions from temporary or subsidized modalities maintain a stable rate of 1.01, i.e., practically only one contract signed in the year.
These data reveal a clear reality: turnover is concentrated in those workers who are hired “from scratch”, without any previous relationship with the company. In other words, the real focus of instability continues to be in new hires, where multiple hiring is still very common.
What are the implications of this stagnation?
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The labor reform was effective, but its initial effect has dissipated.
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High turnover is still high, especially in sectors where contracts are still very short.
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The challenge now is qualitative: it is not enough to have more permanent contracts, but the quality and duration of these employment contracts must be improved.
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Active employment and training policies must adapt to this new reality in order to reduce structural volatility.
What can be done?
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Encourage incentives for employee retention beyond the first year.
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To focus on training and re-qualification, to reduce dependence on sectors with high turnover.
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Deepen data segmentation to understand where and why instability persists.
Conclusion
Although turnover indicators have improved from pre-reform levels, the pace of progress has slowed. The figure of 2.27 contracts per worker is a warning: there is still a long way to go to achieve truly stable and sustainable hiring. The key is not only in how many contracts are signed, but in how many quality jobs are maintained.
